AirDNA
[Credit: Samuel Agbetunsin on Unsplash]

AirDNA: Strong start to 2023 for US short-term rental bookings

US: The latest monthly review of the US short-term rental market published by data provider AirDNA shows that 2023 started strongly for US short-term rentals, with occupancy in January stabilising just 1.3 per cent lower than last year and a solid new booking season to begin the year. 

Available listings grew a little more than in December, though growth has slowed considerably since interest rates began to rise, leaving supply at 21.9 per cent higher than last year, and demand 14.5 per cent higher. This rebalancing kept January occupancy stable at 49.9 per cent, only 1.3 per cent below last January.

Meanwhile, average rates were up 3.1 per cent year over year to $311, their growth slowing very slightly from +3.4 per cent in December. This is the slowest ADR gain since December 2019, as the pressure on consumers gets tougher, and more budget-friendly properties and locations dominate.

According to AirDNA, this was reflected in the types of locations getting booked: mid-sized cities saw the highest ADR growth [+7.4 per cent], whereas in traditionally expensive mountain destinations, rates were only up 2.5 per cent.

January is typically the strongest month for short-term rental guests booking their spring and summer vacations, and this year did not disappoint, with fairly positive economic news encouraging strong new bookings, up 17 per cent year-on-year. Looking ahead, the next six months are seeing demand eight to 10 per cent higher than last year, while ADRs are up three to five per cent, in line with expectations for slowing inflation.

The full report by AirDNA can be read at this link.

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